NYSE:LEG

Stock Analysis Report

Executive Summary

Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide.

Rewards

Earnings are forecast to grow 8.51% per year

Earnings grew by 3.7% over the past year

Pays a high and reliable dividend of 3.17%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Leggett & Platt's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LEG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

LEG

4.1%

US Consumer Durables

2.0%

US Market


1 Year Return

29.3%

LEG

36.9%

US Consumer Durables

23.6%

US Market

Return vs Industry: LEG underperformed the US Consumer Durables industry which returned 36.1% over the past year.

Return vs Market: LEG exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

LEGIndustryMarket
7 Day3.5%4.1%2.0%
30 Day-0.1%6.4%3.9%
90 Day17.4%4.7%12.0%
1 Year34.1%29.3%38.9%36.9%26.2%23.6%
3 Year18.7%7.3%35.3%29.1%53.2%43.3%
5 Year34.7%15.2%42.7%33.1%75.7%56.3%

Price Volatility Vs. Market

How volatile is Leggett & Platt's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Leggett & Platt undervalued compared to its fair value and its price relative to the market?

22.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LEG ($50.99) is trading above our estimate of fair value ($50.96)

Significantly Below Fair Value: LEG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LEG is poor value based on its PE Ratio (22.6x) compared to the Consumer Durables industry average (13.7x).

PE vs Market: LEG is poor value based on its PE Ratio (22.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: LEG is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: LEG is overvalued based on its PB Ratio (5.3x) compared to the US Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Leggett & Platt forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEG's forecast earnings growth (8.5% per year) is above the savings rate (1.7%).

Earnings vs Market: LEG's earnings (8.5% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: LEG's earnings are forecast to grow, but not significantly.

Revenue vs Market: LEG's revenue (4% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: LEG's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LEG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Leggett & Platt performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEG has high quality earnings.

Growing Profit Margin: LEG's current net profit margins (6.4%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: LEG's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: LEG's earnings growth over the past year (3.7%) exceeds its 5-year average (3.2% per year).

Earnings vs Industry: LEG earnings growth over the past year (3.7%) exceeded the Consumer Durables industry -1.5%.


Return on Equity

High ROE: Whilst LEG's Return on Equity (23.9%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Leggett & Platt's financial position?


Financial Position Analysis

Short Term Liabilities: LEG's short term assets ($1.6B) exceed its short term liabilities ($920.8M).

Long Term Liabilities: LEG's short term assets ($1.6B) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: LEG's debt to equity ratio (178.7%) is considered high.

Reducing Debt: LEG's debt to equity ratio has increased from 81.5% to 178.7% over the past 5 years.

Debt Coverage: LEG's debt is well covered by operating cash flow (27%).

Interest Coverage: LEG's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet

Inventory Level: LEG has a high level of physical assets or inventory.

Debt Coverage by Assets: LEG's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Leggett & Platt's current dividend yield, its reliability and sustainability?

3.13%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: LEG's dividend (3.17%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: LEG's dividend (3.17%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: LEG's dividends per share have been stable in the past 10 years.

Growing Dividend: LEG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70%), LEG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LEG's dividends in 3 years are forecast to be covered by earnings (56.9% payout ratio).


Next Steps

Management

What is the CEO of Leggett & Platt's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Karl Glassman (61yo)

4yrs

Tenure

US$10,567,930

Compensation

Mr. Karl G. Glassman has been the Chief Executive Officer of Leggett & Platt, Incorporated since January 1, 2016 and its Chairman since January 1, 2020. Mr. Glassman served as President of Leggett & Platt, ...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD10.57M) is above average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Karl's compensation has increased by more than 20% in the past year.


Management Age and Tenure

0.6yrs

Average Tenure

58yo

Average Age

Experienced Management: LEG's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Insider Trading

Insider Buying: LEG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$369,61302 Dec 19
Russell Iorio
EntityIndividual
Shares6,962
Max PriceUS$53.09
SellUS$360,10802 Dec 19
Robert Enloe
EntityIndividual
Role
Lead Director
Lead Director
Shares6,849
Max PriceUS$52.58
SellUS$240,99912 Nov 19
Joseph McClanathan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,399
Max PriceUS$54.79
SellUS$1,267,60707 Nov 19
Phoebe Wood
EntityIndividual
Shares23,260
Max PriceUS$54.50
SellUS$508,43801 Nov 19
Judy Odom
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$50.84
SellUS$514,55231 Oct 19
Scott Douglas
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares10,000
Max PriceUS$51.46
SellUS$450,07517 Sep 19
Karl Glassman
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,683
Max PriceUS$42.13
SellUS$13,36509 Aug 19
Susan McCoy
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Investor Relations
Shares338
Max PriceUS$39.54
SellUS$503,39627 Feb 19
Russell Iorio
EntityIndividual
Shares11,008
Max PriceUS$45.73
SellUS$444,54415 Feb 19
Joseph McClanathan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,143
Max PriceUS$43.83

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Karl Glassman (61yo)

    Chairman & CEO

    • Tenure: 4yrs
    • Compensation: US$10.57m
  • Mitch Dolloff (53yo)

    President

    • Compensation: US$3.00m
  • Perry Davis (60yo)

    Senior Vice President of Operations

    • Tenure: 7.9yrs
    • Compensation: US$3.04m
  • Susan McCoy (54yo)

    Senior Vice President of Investor Relations

    • Tenure: 0.9yrs
  • Scott Douglas (59yo)

    Senior VP

    • Tenure: 10yrs
    • Compensation: US$1.56m
  • Steve Henderson (58yo)

    EVP and President of Specialized Products Segment

    • Ben Burns

      VP of Business Support Services & Treasurer

      • Tenure: 0.08yrs
    • Jeff Tate (49yo)

      Executive VP & CFO

      • Tenure: 0.3yrs
    • Chuck Hutchins

      VP & Chief Tax Officer

      • Tenure: 0.08yrs
    • Darrel Wild

      VP & Chief Credit Officer

      • Tenure: 0.08yrs

    Board Members

    • Karl Glassman (61yo)

      Chairman & CEO

      • Tenure: 4yrs
      • Compensation: US$10.57m
    • Judy Odom (66yo)

      Independent Director

      • Compensation: US$301.14k
    • Manny Fernandez (73yo)

      Independent Director

      • Compensation: US$281.82k
    • Mitch Dolloff (53yo)

      President

      • Compensation: US$3.00m
    • Joe McClanathan (66yo)

      Independent Director

      • Compensation: US$252.28k
    • Robert Enloe (80yo)

      Lead Director

      • Compensation: US$410.93k
    • Mary Elizabeth Campbell (52yo)

      Independent Director

      • Tenure: 0.2yrs

    Company Information

    Leggett & Platt, Incorporated's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Leggett & Platt, Incorporated
    • Ticker: LEG
    • Exchange: NYSE
    • Founded: 1883
    • Industry: Home Furnishings
    • Sector: Consumer Durables
    • Market Cap: US$6.738b
    • Shares outstanding: 131.60m
    • Website: https://www.leggett.com

    Number of Employees


    Location

    • Leggett & Platt, Incorporated
    • No. 1 Leggett Road
    • Carthage
    • Missouri
    • 64836
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    LEGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1970
    LP1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1970
    0JTTLSE (London Stock Exchange)YesCommon StockGBUSDJan 1970

    Biography

    Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. It operates through four segments: Residential Products, Furniture Products, Industrial Products, and Specialized Products. The Residential Products segment offers innersprings, wire forms, and machines to shape wire into various types of springs; industrial sewing/finishing machines, conveyor lines, mattress packaging, and glue-drying equipment, as well as quilting machines; and structural fabrics, carpet cushions, and geo components. It serves manufacturers of finished bedding, upholstered furniture, packaging, filtration, and draperies; retailers and distributors of carpet cushions; and contractors, landscapers, road construction companies, and government agencies using geo components. The Furniture Products segment offers molded plywood components; bases, columns, back rests, control devices, and casters and frames; private-label finished furniture; beds and bed frames; adjustable beds; and steel mechanisms and hardware, and springs and seat suspensions. It serves upholstered and office furniture manufacturers; department stores and big box retailers; e-commerce retailers; and mattress and furniture retailers. The Industrial Products segment offers drawn wires, bedding and furniture components, automotive seat suspension systems, and steel rods. It serves packaging and baling companies, mechanical spring manufacturers, and wire distributors. The Specialized Products segment offers mechanical and pneumatic lumbar support and massage systems, seat suspension systems, motors and actuators, and cables; titanium, nickel, and stainless steel tubing, formed tube, and tube assemblies; and engineered hydraulic cylinders. It serves automobile and mobile equipment OEMs, and aerospace suppliers. The company sells its products through sales representatives and distributors. Leggett & Platt, Incorporated was founded in 1883 and is headquartered in Carthage, Missouri. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 23:36
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.